If Demand Is Relatively Price Inelastic

Multiple Choice

If demand is relatively price inelastic:

A) a 1 percent increase in price evokes a less than 1 percent decrease in quantity demanded.
B) a 1 percent increase in price evokes a larger than 1 percent decrease in quantity demanded.
C) a 1 percent decrease in price evokes a larger than 1 percent increase in quantity demanded.
D) a 1 percent decrease or increase in price induces no change in total revenue.
E) none of the above.